A RED Kubota…?? Really..?? And Why Leasing may beat buying.

[GeoHorn]

Watching a TractorMile video I became interested in the FEL joystick which looked strangely like a Kubota…and then Mike steps aside and SURE ENOUGH .. A RED KUBOTA (with a LA525 loader). What is going on?

 

[#40Fan]

Piss poor camera or editing software.

 

[Nicksacco]

I don't know much about editing software, but that sure sounds like the answer.
Red really jumps at you, doesn't it?

Interesting video however. Mike generally always has good content.

 

[mikester]

It's the camera settings causing the color to be off.

Tractor Mike is a true salesman who likes to hear himself talk and he is full of sales BS. He should rename the video "Eight reasons why leasing is good for the leasing company and sales persons"

 

[GreensvilleJay]

I could only stomach up to the 5 minute mark, even then skipped a lot...neve rdid hear the 8 good reasons why to lease..
yamme, yammer, yammer,, with NO real content...reminds me of nearly every politician when they talk !!

As for 'perpetual' leasing...
to me it's just a great 'con'. you never ever OWN the item ( car,truck, tractor ) so the same as renting.

perhaps someone can explain why a person (not a business ) would lease ?

 

[fried1765]

I could only stomach up to the 5 minute mark, even then skipped a lot...neve rdid hear the 8 good reasons why to lease..
yamme, yammer, yammer,, with NO real content...reminds me of nearly every politician when they talk !!

As for 'perpetual' leasing...
to me it's just a great 'con'. you never ever OWN the item ( car,truck, tractor ) so the same as renting.

perhaps someone can explain why a person (not a business ) would lease ?

Explaination:
"leasing" is MUCH less expensive than a divorce!
Annual renewable "lease" works best!

 

[bbxlr8]

Saw this recently while picking up a used part for my Ford - had to snap a pic
Guy at the part counter just shrugged when I asked about the color

No photo editing involved!

 

[fried1765]

View attachment 91845

Saw this recently while picking up a used part for my Ford - had to snap a pic
Guy at the part counter just shrugged when I asked about the color

No photo editing involved!

Hoses, wires, exhaust, .......everything pink?

 

[bbxlr8]

Hoses, wires, exhaust, .......everything pink?

what were they thinking right...? sprayed it all & never fired

 

[GreensvilleJay]

if they used VHT or similar paint, it'd hold up very well...

 

[GeoHorn]

I could only stomach up to the 5 minute mark, even then skipped a lot...neve rdid hear the 8 good reasons why to lease..
yamme, yammer, yammer,, with NO real content...reminds me of nearly every politician when they talk !!

As for 'perpetual' leasing...
to me it's just a great 'con'. you never ever OWN the item ( car,truck, tractor ) so the same as renting.

perhaps someone can explain why a person (not a business ) would lease ?

A farmer is a person…who lives off his work…and pays taxes…and a lease can be very attractive in such instances.
I don’t understand the vitriol some respondents have expressed toward Mike… he isn’t selling tractors anymore…PLUs in that video he actually (respectably) reveals his own shortcomings as a salesman.
He offers a follow-up video on the shortcomings of leasing …so he tells both sides of the story.

To a “newbie” to tractors, Mike has an informative and helpful spirit, IMO.

 

[Mark_BX25D]

A farmer is a person…who lives off his work…and pays taxes…and a lease can be very attractive in such instances.

Attractive, yes. Financially sound, no.

Most people get their education on leasing from people who are selling leases.


Try just doing the math, side by side, on paper, and leave out all the glorious assumptions that salesmen throw in as if they were facts.

It works out about as well as whole life or a timeshare.

 

[58Ford]

I have used leasing on (automobiles at least) very successfully in the past. On most I made money by selecting an option or options that were likely to retain value higher than the proposed residual offered by the leasing company. At lease end if I wasn’t happy with the offer for the lease return and thought there was equity in it, I sold it elsewhere. When Toyota removed the V6 option from the Rav4 and I returned mine 3 years later there was no V6 available and the market was hot for the V6. Made 6k on the difference between stated residual value and what I actually received for the vehicle.

Most automakers have now rewritten their lease contracts to limit this. They have to go back to the original dealer or finance company.

I have also sold lots of leases on imaging equipment where the payout at the lease end was $1.00 and the leased got to pick the term. It was basically a short term loan on a fixed rate based on their own personal Fico with some financing charges that were disclosed up front and no repayment penalty. I was quite successful at it.

I can see instances where someone might lease an L or an MX to get their 5 acre lot in shape for building (say 2-3 years) then return it at lease end for a unit that is more maintenance focused. Say a B purchase for arguments sake.

Don’t agree that all leases = bad financial decision. If you have money you spend it however you want. Leasing included. What value do you place on Opportunity Cost?

 

[mikester]

Leasing is ok if you have too much business income and you need some write offs instead of paying the government more in taxes. Some commission based sales persons can also write off certain vehicle expenses if your employer fills out the right forms for your taxes.

If you purchase outright you have to depreciate the asset according to the govt schedules. Rentals/Leases get written off in you current business year. Your accountant will help you decide what is the most cost effective way for your situation.

There is no financial benefit for an individual with a Joe job to lease a vehicle.

Leasing gives you a smaller cash outlay up front but essentially it's a long term rental with a lot of potential penalties at the end. It's a long term liability. If you finance - your payments are higher - but you have an ownership share in an asset at the end of the day.

 

[Flintknapper]

View attachment 91845

Saw this recently while picking up a used part for my Ford - had to snap a pic
Guy at the part counter just shrugged when I asked about the color

That's just wrong..........

 

[GreensvilleJay]

OK, follow up question...
HOW can leasing be better than buying for an individual ? I've seen bank loans close or equal = to lease payments and at the end of the terms... you OWN the ride when you buy, if you lease, well you've just rented that ride for the term....

I KNOW how a business can benefit from leases, BTDT...

 

[ken erickson]

View attachment 91845

Saw this recently while picking up a used part for my Ford - had to snap a pic
Guy at the part counter just shrugged when I asked about the color

No photo editing involved!

That's just wrong..........

My thought without any context was perhaps it is a tractor for a Breast Cancer awareness event or fundraiser. Plenty of examples of pink tractors on the "net".

 

[58Ford]

I’ve already given one example. I buy a lot that needs heavy tractor work say L initially but once that’s done, I really only need a BX for maintenance. Guess what, I didn’t have to pony up all that cash to take the L home. I just use it for the lease period and hand it back. If it was still possible I would also look at a private sale to see if I could get anything higher than the residual (if allowed). Then maybe purchase the BX unless I am planning on selling the property within the next 5 years…..

Without looking at specific examples that contain current interest rates for both leasing and financing plus money factor calculations and residual payouts it’s really hard to provide specific examples. Other than a general, sometimes leases do in fact have benefits.

Based on personal Ficos, and what the current lease rates are it may not be beneficial. There are quite often blips in the market like say a slow business quarter where the dealership and or finance company throw money at the leases to lower the MF and that can make it very beneficial.

Also what type of lease? There’s many types. Most 6 figure car sales are financed this way in the UK. Drive a Range Rover, Maserati or AMG for 2 years then replace it. It’s not right for everyone but many people do it repeatedly. I have family that do just this routinely. They make a monthly payment on a vehicle they enjoy and never have to pony up all the cash to take the ride home. Just rinse and repeat. But there’s some risk involved. Maybe that’s the issue for some?

I never had a bad auto lease in the US. I had some that didn’t benefit me as much but there is something nice about not having to worrry about a depreciating asset and ongoing maintenance costs (60k mile service for instance) not to mention the value I am left with if someone plows into my owned vehicle vs a leased one. I used to laugh at diminished value, not so much these days as I now own.

If I had to park in public parking routinely for 40s hrs a week - I would probably still lease that vehicle for that reason alone. No diminished value on a lease. CarFax can bite me.

Speaking of CarFax. They sent me an email yesterday reminding me to protect my investment and get my truck serviced. They actually stated “Only 17% of traded vehicles have a perfect score on service and maintenance. Ensure you protect your value!” Obviously Ram shares their service/maintenance history with CarFax. Talk about Big Brother watching…..

 

[DustyRusty]

I’ve already given one example. I buy a lot that needs heavy tractor work say L initially but once that’s done, I really only need a BX for maintenance. Guess what, I didn’t have to pony up all that cash to take the L home. I just use it for the lease period and hand it back. If it was still possible I would also look at a private sale to see if I could get anything higher than the residual (if allowed). Then maybe purchase the BX unless I am planning on selling the property within the next 5 years…..

Without looking at specific examples that contain current interest rates for both leasing and financing plus money factor calculations and residual payouts it’s really hard to provide specific examples. Other than a general, sometimes leases do in fact have benefits.

Based on personal Ficos, and what the current lease rates are it may not be beneficial. There are quite often blips in the market like say a slow business quarter where the dealership and or finance company throw money at the leases to lower the MF and that can make it very beneficial.

Also what type of lease? There’s many types. Most 6 figure car sales are financed this way in the UK. Drive a Range Rover, Maserati or AMG for 2 years then replace it. It’s not right for everyone but many people do it repeatedly. I have family that do just this routinely. They make a monthly payment on a vehicle they enjoy and never have to pony up all the cash to take the ride home. Just rinse and repeat. But there’s some risk involved. Maybe that’s the issue for some?

I never had a bad auto lease in the US. I had some that didn’t benefit me as much but there is something nice about not having to worrry about a depreciating asset and ongoing maintenance costs (60k mile service for instance) not to mention the value I am left with if someone plows into my owned vehicle vs a leased one. I used to laugh at diminished value, not so much these days as I now own.

If I had to park in public parking routinely for 40s hrs a week - I would probably still lease that vehicle for that reason alone. No diminished value on a lease. CarFax can bite me.

Speaking of CarFax. They sent me an email yesterday reminding me to protect my investment and get my truck serviced. They actually stated “Only 17% of traded vehicles have a perfect score on service and maintenance. Ensure you protect your value!” Obviously Ram shares their service/maintenance history with CarFax. Talk about Big Brother watching…..

Some dealerships are tied into the Carfax system and they report all service through the Carfax system. I do a lot of my own service, and I keep the record on the Carfax system in a personal free account. When you take your car to a shop for body repairs, you have to ask first if they report the repairs to Carfax. If they do, then find another shop or request that they don't do the reporting. Fixing a small dent gets reported the same as fixing a smashed fender. This can cause a dramatic decrease in the value of your car. Carfax does have access to state motor vehicle records and does report mileage, inspections, title changes, etc.

 

[Mark_BX25D]

Leasing is ok if you have too much business income and you need some write offs instead of paying the government more in taxes.

Ah, that fundamental misunderstanding of tax write offs.


Tell ya what. Send me $1,000, and I'll send you back $900 instead of $800. Wow, you just made $100! What a deal!



America needs to teach basic consumer math. It would put a lot of people out of business, though.